Sep 7, 2016

Stop the Special Interest Slush Fund

When the Department of Justice (DOJ) recovers money from an individual or organization that breaks the law, there are two places that money should be sent: to those who suffered damages when the law was broken as compensate or to the United States Treasury. Where that money shouldn’t go is to third party special interest groups with special connections in government.

After nearly two years of investigating, the House Judiciary Committee led by Chairman Bob Goodlatte (VA-06) discovered that in the last two years alone, the DOJ has forced those who lost in court to “donate” $880 million to activists groups. What’s worst, the activists groups that received these “donations” were many times the very groups who placed mandatory donation provisions in the settlements.

This is an abuse that must be stopped, which is why the House Judiciary Committee wrote the Stop Settlements Slush Fund Act and Leader McCarthy scheduled the bill for a vote today. As Leader McCarthy said,

“Money that should be used for the public good or to right a wrong instead is channeled without transparency to third parties with special connections within the government. Chairman Goodlatte’s bill—part of our A Better Way agenda — will stop this abusive special-interest slush fund.”

Chariman Goodlatte said as well,

“Congress is working to help hardworking Americans recover from the 2008 financial crisis, only to learn that the DOJ has been taking the sought after funds from major financial institutions, and quietly putting them in the hands of left-wing special interest groups. It is time for this practice within the DOJ, as well as all government agencies to be stopped.”

For the sake of transparency and to stop the special interest paydays, America needs this legislation.